☠️ In Tinubu's Nigeria
Sorry: this one is a lot longer than usual. I missed a lot over the last two weeks and we are catching up. Enjoy
Written by: me, adetomiwa
edited by: me
researched by: me
sponsored by: me & coffee
In this edition:
Aftermath of Tinubu’s inauguration speech
Inauguration promises
Streetlights > education
Nigerian Airlines or Ethiopian Airlines
What’s happening in the presidential election tribunal
This newsletter is 2,700 words (approx. 9 min read)
Tinubu inauguration aftermath
On Monday, Bola Ahmed Tinubu was officially inaugurated as Nigeria’s new President on Monday. As president, he inherits Aso Rock, the people’s expectations and Buhari’s N16.29 trillion Naira debt.
During his inauguration speech, Tinubu promised:
“To govern Nigerians and not rule [us]”
That security is his administration’s biggest priority
To target GDP growth of above 6% annually.
To improve economic growth, Tinubu says he will work on budget reform and making electricity accessible and affordable everywhere 🙏
His admin, he says, will also work on making Nigeria’s tax and economic environment better for investors
Tinubu also said the last administration's monetary policy is rubbish (im paraphrasing), and he’ll work on fixing that trainwreck (paraphrasing)
He also said his guys will work on job creation and review the minimum wage to reflect current realities
And finally, petrol subsidy: Tinubu reiterated that the subsidy, which has been postponed and debated for years, then, under Buhari’s regime re-scheduled to begin in June, will for sure happen. - This announcement caused havoc upon havoc upon havoc.
Petrol subsidy: rollover effect
Hours after Tinubu’s speech, petrol stations closed their gates. And the ones that stayed open started to sell petrol at heavily inflated prices (from N197 to N500 - N800). Reports speculate that the stations that closed shop were waiting for the official announcement so they could sell their remaining petrol at the new no-subsidy price.
On Tuesday, the Federal Government and state governments released a statement warning the petrol stations to stop selling at the hiked price before the official price announcement
However, petrol marketers claimed that they had received an official document from NNPC that confirmed the new price.
NNPC released a statement confirming that petrol price has been increased to “reflect new realities”, but the statement did not mention the new official cost of petrol and they have not announced a price yet.
But the Group Chief Executive Officer of NNPC, Mele Kyari, speculated (I wrote assured initially but this is the right word because lowkey the meaning of what he said is that he doesn’t know) that the price of petrol “will come down” when the market adjusts. We don’t know when.
Kyari said, “The beauty of this [subsidy removal] is that there will be new entrants [into the market] because oil marketing companies’ reluctance to come into the market all along is the very fact of the subsidy regime that is in place”. Which, obviously, is what the people who need petrol for everything every day due to the shitty electricity want to discuss. We’re all here for the long-term benefits.
Where’s the Money going?
Street lights
BudgIT says they found in the 2023 budget that the Nigerian government has allocated more money for the construction of streetlights than for education and health combined.
In the 2023 budget, N81.7 billion was allocated for streetlights, while schools received N77.9 billion and primary health centres received N3.1 billion.
Context: Nigeria has a high number of out-of-school children, and its child and maternal mortality rates are among the highest in the world.
Another concern: many streetlights in Nigeria are non-functional or vandalized shortly after being built.
BudgIT also found that many projects were assigned to agencies outside their mandate, amounting to over 687 projects worth N112 billion.
National Assembly severance
While over half of the population wrestles with poverty and pensioners beg for their severance, the National Assembly in Nigeria is preparing to pay out severance packages to lawmakers as the current 9th Assembly comes to an end.
The Clerk of the House, Yahaya Danzaria, informed the members that they can collect their clearance forms for the payment of severance gratuity.
The budget for severance and welcome packages for outgoing and incoming National Assembly members and aides in the 2023 Appropriation Act is over N30 billion. This includes various allocations for different departments and services within the National Assembly.
Additionally, retired heads of government agencies will receive severance benefits, and former presidents, vice presidents, and military heads of state will also receive their entitlements.
The total cost of final pay for political appointees and government officials is estimated to be about N64.72 billion. No pay cuts
The 9th Assembly, which started in June 2019, will conclude in the first week of June, and the 10th Assembly will be inaugurated shortly after.
Refineries
A committee in the House of Representatives in Nigeria has reported that the government spent over N11 trillion on rehabilitating refineries from 2010 to now, with no results.
The Nigerian National Petroleum Corporation (NNPC) shut down the refineries in 2019 for comprehensive rehabilitation. The committee provided a breakdown of the costs, stating that the total cost of rehabilitation was N11,349,583,186,313.40, with additional costs in other currencies.
The report revealed that the nation's refineries have been operating at low capacity since 2010, resulting in significant losses.
The committee also highlighted contracts awarded and payments made to various entities for the rehabilitation projects. The total amount spent on oil subsidy payments from 2010 to 2020 was ₦5,948,140,000,000, and deductions from the Federation Account for refinery rehabilitation from 2020 to 2021 were ₦191,670,000,000.
The report concludes that the total actual cost of rehabilitating Nigerian refineries is ₦11,349,583,186,313.40.
However, the committee's recommendations were dismissed as insufficient by the Deputy Speaker, who chaired the committee.
Dangote to the rescue.
The Senate, Ways & Means
The Nigerian Senate is discussing a proposal to increase the Ways and Means provision from 5% to 15%.
This provision allows the government to borrow money from the Central Bank of Nigeria for short-term financial needs.
The proposed increase aims to collect an additional N1.2 trillion from the central bank, which is equivalent to 15% of the previous year's budget.
If approved, this bill would amend the CBN Act.
The current administration under President Buhari has already collected an additional N4 trillion through Ways and Means in the past three months, totalling N26 trillion (recall the in-fighting over a “gift” to change their mind).
The government's public debt, including Ways and Means, has risen to over N70 trillion.
This proposal has caused controversy as it would allow more borrowing and increase the country's debt burden.
The budget deficit for 2023 is N10.7 trillion, which the government plans to finance through various means, including borrowing from the central bank.
The airline was a scam
Stakeholders in Nigeria's aviation industry are requesting a thorough investigation into the Nigeria Air project, which was initiated by former Minister of Aviation, Sen. Hadi Sirika. - Nairametrics
They want an independent inquiry to examine the project's conception, process, expenses, and parties involved.
They are also urging the Nigeria Civil Aviation Authority (NCAA) to investigate Ethiopian Airlines' role in the Nigeria Air project, particularly concerning the public display of a foreign aircraft painted as Nigeria Air. (the aircraft was found to have an Ethiopian Airline tag on it)
There are concerns about the project's controversies, public outcry, and alleged malpractices.
Stakeholders believe that the new government should establish an independent body to shed light on the project and hold those involved accountable.
They also call for a probe into Ethiopian Airlines' involvement and potential violations of aviation regulations.
The airline “launched” a week ago and there are no details on how to book flights, no known website. Nothing
Naira devalue? Not particularly?
The Central Bank of Nigeria (CBN) has denied rumours that it has devalued the country's currency, the naira, to N631/$1.
The CBN stated that the exchange rate at the Investors' & Exporters' (I&E) window traded at N465/US$1 on June 1, 2023, and has remained stable at that rate for some time.
The CBN called the reports of devaluation "fake news" and urged the public to ignore them. The bank advised media organizations to verify their facts with the CBN before publishing such news to avoid misinforming the public.
Back story: Daily Trust reported that with the resumption of the weekly bidding for foreign exchange, CBN sold the spot rate to banks on behalf of their customers at N631/1$ most bidders got the full amount they requested.”
The report also cited President Bola Tinubu’s inaugural speech, in which he spoke about having a unified exchange rate.
However, Nairametrics clarified that the report misunderstood the intra-day high spot rates at the Investor & Exporter window where the dollar is sold officially.
Nairametrics reported on May 27th, 2023 that the exchange rate at the official I&E window sold for as high as N632/$1. The official rate closed at N464.67/$1 on Thursday, May 31 2023 while the intra-day high was also N467/$1 on the same day.
A misunderstanding (let this be a lesson to the economists. Because why does it need to be complicated?), but it’s still not cute.
The President of the World Bank Group, David Malpass, has expressed concern about Nigeria's multiple exchange rates and how they can negatively impact the country's debt burden.
He explains that having parallel exchange rates, where there is a significant difference between the official rate and the market rate, can lead to future difficulties in repaying debts and increase the risk of financial distress.
Malpass also points out that parallel exchange rates are expensive, promote corruption, hinder economic growth, and impede foreign investment.
He mentions that countries like Nigeria, Argentina, and Ethiopia have made limited progress in addressing this issue.
Malpass further warns that the existence of parallel exchange rates can undermine the effectiveness of World Bank projects and result in more foreign debt.
He emphasises the need to address this problem and outlines some measures the World Bank has taken to mitigate the impact of parallel rates on its operations.
*Thankfully* President Bola Tinubu (sigh), has affirmed the intention to harmonize Nigeria's multiple exchange rates.
Fraud
The EFCC has reportedly been questioning a former governor of Ekiti State, Kayode Fayemi, over allegations of laundering N4 billion.
The EFCC spokesperson declined to comment on the matter. But Kayode Fayemi reps it.
According to a statement from Fayemi's media office, he visited the EFCC in response to a petition that aimed to tarnish his reputation.
His reps said the EFCC did not raise any specific allegations of fraud during the visit, and Fayemi cooperated with the investigators.
The EFCC is also investigating other former governors: Bello Matawalle of Zamfara State and Yahaya Bello of Kogi State. Matawalle is accused of diverting over N70 billion through phantom contracts, while Bello is suspected of corruption.
Crime & Insecurity
Abuja
Two new tenants who recently moved into an apartment in the Bako area fled with their neighbour's two children. The children, a five-year-old girl and a two-year-old boy went missing after one of the tenants offered to take them to buy biscuits while their mother was praying. - Punch
Ibadan
In Ibadan, the police recently arrested 78 people who were suspected of planning to cause crimes in the city in response to the suspension of the Disciplinary Committee responsible for managing motor parks, which led to concerns about conflicts among road transport unions - premium times.
The police raided a hotel where the leader of the transport union, known as Auxiliary, was believed to be hiding.
They found firearms, ammunition, and other criminal tools.
The police recovered various weapons, including an AK-47 rifle, pump-action rifles, and pistols, as well as cartridges, knives, mobile phones, charms, and a significant amount of cash. Auxiliary managed to escape
The has since increased patrols and set up emergency contact numbers for residents to report any suspicious activity or emergencies.
Ile-Ife Hilton murder
Abdulrahman Adedoyin, the owner of the Hilton Hotel and Resort in Ile-Ife, has been sentenced to death by hanging by the Osun State High Court for the murder of Timothy Adegoke, a post-graduate student. - thisday
Two other members of the hotel staff were also sentenced to death for their involvement in the murder and conspiracy.
Adegoke travelled to Ile-Ife for exams and stayed at the hotel. When his wife didn’t hear from him, she reported her 37-year-old husband missing. Upon investigation. Timothy was found dead.
Adedoyin and six staff members faced an 18-count charge including murder, conspiracy, and oath of secrecy.
The Chief Judge concluded that the circumstantial evidence strongly indicated Adedoyin's involvement in the murder, and his decision not to testify worked against him.
The court ordered the forfeiture of the vehicle used to transport the body and the hotel belonging to Adedoyin to the state.
The education of Timothy Adegoke's children will be sponsored by Adedoyin's estate until the university level and completion of National Youth Service Corp.
Legislation
Struggling with equality
The "Gender and Equality Opportunities Bill" has passed the second reading in the Nigerian Senate.
The bill aims to remove all forms of discrimination against women and people with disabilities.
It addresses issues such as land ownership, inheritance, education, employment, and gender-based violence.
Some senators raised concerns in the past, but those concerns were removed, and the bill was debated and passed for the second reading.
But this is only the 5th in an 11-step process for this bill to become law.
The Senate is pro-student sexual harassment it seems
Nigerian students are protesting the failure of the National Assembly to pass the 'Prevention, Prohibition and Redressal of Sexual Harassment in Tertiary Educational Institutions Bill, 2019'. The bill proposes a 5-year jail term for lecturers and educators convicted of sexually harassing their male or female students.
In 2016, the Former President of the 8th Senate, Bukola Saraki and the Senate officially announced that they had endorsed this bill (it passed the 10th stage of the legislative process to become law). However, it was never sent to the president to be passed into law because some House of reps members weren’t with it (they need to present a united front for a bill to be presented to the president).
At the time, Femi Gbajabiamila, then-Majority Leader and now Speaker of the House of Representatives, was one of those that rejected it and proposed amendments. He said the bill ought to include workplace, religion and other educational institutions.
The ASUU president at the time, Biodun Ogunyemi, was also against the bill
The Deputy President of the Senate, Senator Ovie Omo- Agege presented it again in 2019 to the 9th Senate, but it was again not passed.
It will have to be re-introduced in the 10th Senate.
The students are calling on the National Assembly and the Presidency to take action and protect students from further violations of their rights.
ASUU vs The FG
The National Industrial Court is supporting the "no work no pay" imposed by the Federal Government in a case against the Academic Staff Union of Universities (ASUU) - Channels
The court says that it is legal for the government to withhold the salaries of ASUU members who went on strike last year. They went on strike to protest unpaid salaries and unfavourable working conditions
However, the court also stated that it is against the University's Autonomy for the government to force ASUU members to use a specific salary payment system called IPPIS.
The Federal Government took ASUU to court because ASUU demanded payment for the period they were on strike, from February 14 to October 7, 2022.
Election Tribunal: what we know
Presidential candidates, Atiku Abubakar and Peter Obi have commenced their case against Bola Tinubu and The Independent National Electoral Commission (INEC). They are contesting the election results in court because they both believe Tinubu rigged it with help from INEC.
Atiku's lawyer presented electoral documents from 32 stares as evidence, but Tinubu's lawyers and INEC objected to their admissibility.
The Labour Party and Peter Obi presented documents against Tinubu including a judgment from a US court (his fraud case in the US), a letter of withdrawal from a senatorial candidate, and other documents. One witness testified that Tinubu was fined $460,000 in the US, but there were questions raised about the evidence. The court also admitted documents filed by Atiku, including result declarations, voter data, and records of collected voter cards.
Other news
Governor Hope Uzodinma of Imo has emerged the new Chairman of the Progressives Governors Forum (PGF) for the next four years - vanguard
Chinese President Xi Jinping has assured President Bola Tinubu of increased economic cooperation with Nigeria, saying the country is important to Africa and the world - channels
Three years after its inauguration and sitting, the House of Representatives ad-hoc committee on COVID-19, on Thursday laid its report - vanguard
A fire incident occurred on Wednesday within the premises of the Lagos State University Teaching Hospital (LASUTH), Ikeja.
A clergyman, Femi Kolade, is currently lamenting the death of his 27-year-old son, Sunday, in the hands of an angry mob in Lagos - punch
From May 18 to June 1, 2023, the troops in the North-East and North-West regions of Nigeria killed 51 terrorists and arrested 93 suspected criminals. Also, 876 members of the Boko Haram/ISWAP and their families surrendered to the troops in Borno. The Director of Defence Media Operations shared this during a briefing on military operations - Punch
Residents of Oregun, in the Ikeja area of Lagos State, were thrown into panic in the late hours of Sunday after a 24-year-old generator engineer, Idris Jagun, lost his life to a stray bullet fired by a policeman - Punch